The on-chain movements of Ethereum do indicate a bullish pressure that has been building around the cryptocurrency as the exchange balances have managed to reach an all-time low, whilst ensuring that the staking deposits keep on surging. The technical charts of the cryptocurrency also suggest that the asset will be able to reclaim a sum of $3000 if the buyers are capable of pushing above the resistance between $1900 and $2000.
The exchange balances for ETH have already touched a new low of 12.6%, wherein they dropped sharply in the last 30 days, according to data from Glassnode. The reduced supply on the exchanges is usually thought of as a bullish sign since it means fewer tokens are available for selling.
Ether Has Been Through Bullish Prices
The overall netflow volume of withdrawals and deposits from the exchanges highlights a steep surge in withdrawals at the very beginning of June- which did come amid a regulatory crackdown on Coinbase and Binance. But, this data shouldn’t be taken at face value, as the withdrawals were caused by investors that were pretty spooked by the centralized exchanges. However, the magnitude of bullish price action and withdrawals do show some similarity to the levels from November 2022, when Ether managed to surge over 33% following an equivalent dip in the exchange balances.
During the same time, the supply of Ether was locked in staking contracts, which has surged significantly since the Shapella upgrade in April. Currently, around 23 million ETH has been deposited in staking contracts, which represents around 19.1% of the entire supply. The data from Glassnode also shows that close to 30% of the supply of Ethereum has been locked in smart contracts- which includes staking contracts and decentralized finance- up from 25.5% at the start of 2023.